Per-trade risk
Most disciplined systems risk between 0.5% and 2% of account equity on any single position. That is risk, not position size: it is the distance to your stop multiplied by your size.
Daily and drawdown caps
A daily loss cap halts new entries after a bad session. A drawdown cap pauses the strategy entirely once equity falls a set percentage from its peak. Both exist to protect you from a broken regime, not from a single bad trade.
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See how risk controls work →Total exposure
Correlated positions are one position. Cap the total exposure across correlated instruments so five crypto longs do not quietly become one oversized bet.